With your taxes in the rearview mirror (hopefully), now is the time to make sure that you are tracking your expenses to make this time next year go smoothly…
Today we are sharing the IRS updates in regard to Standard Mileage Rates for Business; which may have an impact on your 2016 financials, taxes and/or client interactions.
The following is an excerpt from the IRS information release in December . . .
The Internal Revenue Service today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Click here to read the official IRS website announcement.
Adjust and plan accordingly for a successful 2016!